Markets close week steady on upbeat U.S. inflation numbers

Volume was strong at almost 140 million shares, turning decidedly
positive in the afternoon. Market breadth was even through the morning,
moving to 7:6 in favour of advancers, with the volume running up to
almost 2:1 in favour of buyers by the close.

Interest rate-sensitive sectors received a boost from the positive
U.S. Producer Price Index report, particularly utilities and financial
services. The weakness was centered in the golds, which have been
acting as a hedge to the rate-sensitive sectors. Next week, market
attention will focus on the rest of the inflation picture, as the U.S.
releases its all-important Consumer Price Index numbers.

Mackenzie Financial led the way for the financials, rising $1.10 to
$15.70, or about 7.7%, on some late day action in the wake of its
annual meeting.

Nortel Networks led Canadian high-tech stocks, joined by BCE.
The M&A players – Rigel, Poco Petroleum and Air Canada
– all remained extremely active traders. The end of summer holidays
also spelled the return of some hype to Canadian Internet stocks.

American Gem Corp., a sapphire miner turned aspiring online brokerage
firm, was among the volume leaders, issuing a press release disavowing
any knowledge of the reason for the sudden burst of activity in the
stock. Chat room speculation surrounded the possibility of AmGem
announcing the debut of its online brokerage site. So far it only has a
site for online gem sales.

Montreal followed the TSE higher, gaining 12 points by the close.
Alberta had a strong day, rising 25 points, while Vancouver finished
up just over a point.

In New York, markets were boosted by the PPI report, but they
couldn’t manage to hold a sustained rally through the end of the day.
The Dow finished off 50 points on a last-minute selloff. The techs led
the way in the U.S. where the Nasdaq closed up 34 points at an all-time
high.The S&P finished up just three points.